Latest news with #MinorityBusinessDevelopmentAgency
San Francisco Chronicle
08-05-2025
- Business
- San Francisco Chronicle
California libraries spared, for now, from Trump cuts
President Donald Trump's order to slash federal funds for libraries, museums and minority business development programs has been blocked by a federal judge. California's state librarian said the cutbacks would end programs for the needy and those with physical or mental disabilities, and would impact every user in the state. In a nationwide injunction Tuesday, Chief U.S. District Judge John McConnell of Rhode Island said Trump had no legal authority to eliminate congressionally approved funding for the U.S. Institute of Museum and Library Services, the Minority Business Development Agency and the Federal Mediation and Conciliation Service. Trump's Justice Department argued that the president is entitled to fund programs according to his 'priorities.' But McConnell said the cutbacks 'usurped Congress' lawmaking and spending authority' that are protected in the Constitution. Over the past few months, the judge wrote, the defunding 'has disrupted numerous critical state library and museum services and programs, impeded the resolution of time-sensitive labor disputes involving State entities, and curtailed broad-ranging training, consultation, and technical assistance services and programs and facilitate the growth of minority business enterprises.' None of the agencies has offered 'any reasonable explanation' for its actions, McConnell said. The judge cited California State Librarian Greg Lucas's statement that the loss of federal funds would 'stop statewide and local public library programs immediately' and would reduce or halt programs serving seniors, veterans, English learners, and the blind and visually impaired. Lucas, in a sworn declaration to the court, said the Trump administration notified the State Library on April 2 that its $15.7 million federal grant for the next fiscal year had been terminated. 'Any pause in our federal funding … effectively ends programs that local librarians and the 23 million Californians with library cards rely on,' Lucas said. 'Without federal funding, no coordinated upskilling or continuing education exists for the approximately 17,000 employees of California who staff the State's 1,127 libraries.' Also at stake, Lucas said, were services for 'lower-income families, seniors and veterans who rely on libraries to help them navigate an increasingly digital world,' and 'Braille and other free services to the 800,000 Californians who are blind, visually impaired or dyslexic.' He told the Chronicle that on Tuesday, before the judge's order, federal officials had notified California and other states that, contrary to the previous cancellation of funds, they would receive half of the U.S. funding they had been promised for the upcoming fiscal year. That would be an improvement, Lucas said, but the state would still have "no money for all the local assistance we used to do." Nationally, McConnell said in his ruling, the library agency has reduced its staff from 77 to 12, according to its most recent report. He quoted an unidentified employee as saying the agency is not awarding new funds to states and plans to cut off most of its existing grants. California Attorney General Rob Bonta, who filed the suit along with other states, welcomed the ruling and said the Trump administration 'is attempting to dismantle critical federal agencies without any consideration for the Americans that rely on the programs and services these agencies provide.' In response to the ruling, Justice Department spokesperson Natalie Baldassarre said the department "has vigorously defended President Trump's executive actions, including the order to Reduce the Federal Bureaucracy, and will continue to do so.' The administration could ask a federal appeals court to lift McConnell's injunction and could later appeal to the Supreme Court, which last month allowed Trump's Department of Education to cut off more than 100 grants of funding for teacher training, aimed at programs that promoted inclusion of minorities and women. The Minority Business Development Agency, part of the Commerce Department, seeks to aid and promote businesses owned by racial and ethnic minorities and was established under a law signed by President Richard Nixon in 1969. McConnell said its 'workforce has been reduced to zero.' The Federal Mediation and Conciliation Service is a small, independent agency, established in 1947, that provides mediation in labor disputes and says on its website that its goal is 'fostering collaborative labor-management relationships' through training and other assistance. McConnell said the agency announced April 18 that its services were no longer available.
Chicago Tribune
06-05-2025
- Politics
- Chicago Tribune
Judge bars Trump administration from shrinking agencies that fund libraries, settle labor disputes
A federal judge has temporarily barred President Donald Trump's administration from dramatically shrinking three agencies that fund libraries across the U.S., settle labor disputes with public sector workers, and support state business contracting programs. U.S. District Judge John McConnell, Jr. in Rhode Island said Trump can't unilaterally end the funding and programs for the Institute of Museum and Library Services, the Minority Business Development Agency and the Federal Mediation and Conciliation Service. All three agencies were established by Congress. The agencies carried out the cuts under the direction of an executive order from Trump. In Tuesday's preliminary injunction, McConnell said the actions were likely arbitrary and capricious because the agencies weren't able to provide more than 'vague' justifications for the sweeping cuts. 'It also disregards the fundamental constitutional role of each of the branches of our federal government; specifically, it ignores the unshakable principles that Congress makes the law and appropriates funds, and the Executive implements the law Congress enacted and spends the funds Congress appropriated,' McConnell wrote. Twenty-one states sued over Trump's March 14 executive order, which directed the agencies to eliminate every program that isn't mandated by law and to cut staffers and all other functions to the bare minimum allowed by statute. The states said the 'shredding' of the agencies puts hundreds of millions of dollars of grant funding at risk and hurts the general public. Threatened programs include a braille library in Washington, a literacy program in California, and a program supporting veterans in Rhode Island, according to the lawsuit. But attorneys for the government told the judge that the lawsuit is too broad, in part because some of the states are contending that specific grants have been terminated but others are simply anticipating future increased costs or that some grants may not be renewed. In some cases, U.S. Department of Justice attorneys wrote in court filings, the various grant recipients haven't even requested payment of the grants yet. Disputes over personnel claims, like employee terminations or reductions in force, must first be litigated before other entities before they can be brought to federal court, the attorneys wrote, suggesting the states were trying to 'jump the line.' The ruling is consistent with one handed down last week in a similar case out of Washington, D.C. U.S. District Judge Richard Leon also temporarily stopped the Trump administration from shuttering the Institute of Museum and Library Services. Leon said the American Library Association and a labor union for federal employees were likely to succeed in their lawsuit contending that Trump doesn't have the legal authority to shut down the Congressionally created agency.
Yahoo
22-04-2025
- Business
- Yahoo
Scott stays silent as his minority business legacy crumbles under Trump
Senate Banking Chair Tim Scott (R-S.C.) has spent years boosting a federal program to support minority-owned businesses. President Donald Trump's administration dismantled it in a matter of weeks. Scott, along with other Republicans, was integral to congressional efforts to permanently authorize the Commerce Department's Minority Business Development Agency, expand its services into rural areas and leverage the program to help minority-owned businesses during the Covid-19 pandemic. Now, the program, which funds grants to business owners and provides technical assistance, support and mentorship, has had 100 percent of its staff, about 50 people, placed on administrative leave or redistributed within the Commerce Department, according to a Commerce employee and a Democratic staffer granted anonymity to discuss personnel matters. For years, Scott has prioritized efforts to expand access to capital and economic mobility for underserved communities, like the one he says he grew up in, and minority businesses, like his own Main Street insurance agency. The MBDA dates back to the Nixon administration and was one outlet for this mission. But Scott has stayed silent publicly about the gutting of the agency. 'They are watching this happen, and they are doing nothing. That's cowardice. And it cuts especially deep when the people you once believed were your champions turn their backs in silence,' the Commerce Department employee said of Scott's and other Republicans' silence on cuts to the program. Scott campaigned for Trump and at one point was vying to run as his 2024 vice presidential pick. His silence underscores the fine line he and other Black conservatives have to walk between their own interests and loyalty to the party as the administration wages a broader war against the government's diversity-focused initiatives. A spokesperson for the lawmaker highlighted his record of working with Trump to deliver 'life-changing results for minority communities around the nation.' They pointed to Scott's efforts under Trump's first term to secure permanent funding for historically Black colleges and universities, creating 'opportunity zones' under the 2017 Tax Cuts and Jobs Act, and cutting taxes for single mothers. 'Their vision of America is one that allows every American, no matter their background, to have the necessary tools and resources to achieve their American dream. Senator Scott and President Trump are undoubtedly working to make sure our country works for all hard-working Americans,' the Scott spokesperson said in a statement. Scott and other Republican lawmakers have told minority businesses they are supportive of the minority business program's mission but wish the agency would change its name to avoid political attention, said one of the Commerce Department employees. The gutting of the agency counters Scott's recent efforts to improve access to economic tools for underserved communities and minority business owners. His Empowering Main Street in America Act sought to improve access to capital for small businesses, including minority, women-owned and rural small businesses. The bill failed to advance in Congress last year, but Scott said last month that he will continue pushing the legislation forward. Scott and other senators championed bipartisan legislation which passed as part of a 2021 infrastructure and jobs bill that permanently authorized the Minority Business Development Agency and expanded it to establish rural business centers at historically Black colleges and universities. Scott said at a 2020 U.S. Chamber of Commerce fireside chat that 'by having more MBDAs located around the country especially in the rural areas, you'll bring expertise to those would-be entrepreneurs and you'll better equip them for success.' And during the pandemic, Scott pointed out he secured an additional $10 million in a Covid-19 relief bill to help the MBDA connect minority-owned businesses to the Paycheck Protection Program, which provided financial aid to companies during the crisis. 'Small businesses — barber shops and beauty salons and landscapers — are in abundance in the African-American community. They are some of the hardest working people you know and they need to understand and know that the resources are there,' Scott said in a 2020 interview on ABC's The View. Under the current cuts, the MBDA will be unable to deliver core programs, like the Capital Readiness Program, which offers assistance accessing capital and provides technical assistance services. A national network of business centers are now being shuttered and contractors have been released. Those awarded grants by the MBDA have not been notified about the status of their grants and are left without guidance, according to two Commerce Department employees. Only a deputy secretary, an acting under secretary and a DOGE employee remain, according to one of the Commerce Department employees. The U.S. Department of Commerce, U.S. Department of Labor and the Department of Government Efficiency did not respond to requests for comment. Trump has long supported shuttering the MBDA. During his first term, he proposed closing or significantly reducing the agency in his budget proposals all four years. On March 14 he issued an executive order requiring the MBDA to shrink its work and personnel to the minimal amount possible under the law. What's unfolding at the MBDA is 'unprecedented,' the Commerce Department employee said. 'A lawful federal agency being functionally eliminated through verbal instruction, without public transparency, process or regard for its statutory basis.' Congressional Democrats, led mostly by Financial Services Ranking Member Maxine Waters (D-Calif.), have argued the dismantling of the agency 'represents yet another unlawful and dangerous attempt to undermine a congressionally established institution vital to our nation's economy.' Meanwhile, Scott's allies say he will continue to support minority-owned enterprises but may have to adjust his strategy in the new Trump era. Stephen Gilchrist, chair of the South Carolina African American Chamber of Commerce and a Trump appointed commissioner of the U.S. Commission on Civil Rights said Scott 'will work with the administration to find a path to make sure that this work continues' to allow 'African American and other minority businesses to really be able to gain access to capital and to get the resources that they need.'
Politico
22-04-2025
- Business
- Politico
Scott stays silent as his minority business legacy crumbles under Trump
Senate Banking Chair Tim Scott (R-S.C.) has spent years boosting a federal program to support minority-owned businesses. President Donald Trump's administration dismantled it in a matter of weeks. Scott, along with other Republicans, was integral to congressional efforts to permanently authorize the Commerce Department's Minority Business Development Agency, expand its services into rural areas and leverage the program to help minority-owned businesses during the Covid-19 pandemic. Now, the program, which funds grants to business owners and provides technical assistance, support and mentorship, has had 100 percent of its staff, about 50 people, placed on administrative leave or redistributed within the Commerce Department, according to a Commerce employee and a Democratic staffer granted anonymity to discuss personnel matters. For years, Scott has prioritized efforts to expand access to capital and economic mobility for underserved communities, like the one he says he grew up in, and minority businesses, like his own Main Street insurance agency. The MBDA dates back to the Nixon administration and was one outlet for this mission. But Scott has stayed silent publicly about the gutting of the agency. 'They are watching this happen, and they are doing nothing. That's cowardice. And it cuts especially deep when the people you once believed were your champions turn their backs in silence,' the Commerce Department employee said of Scott's and other Republicans' silence on cuts to the program. Scott campaigned for Trump and at one point was vying to run as his 2024 vice presidential pick. His silence underscores the fine line he and other Black conservatives have to walk between their own interests and loyalty to the party as the administration wages a broader war against the government's diversity-focused initiatives. A spokesperson for the lawmaker highlighted his record of working with Trump to deliver 'life-changing results for minority communities around the nation.' They pointed to Scott's efforts under Trump's first term to secure permanent funding for historically Black colleges and universities, creating 'opportunity zones' under the 2017 Tax Cuts and Jobs Act, and cutting taxes for single mothers. 'Their vision of America is one that allows every American, no matter their background, to have the necessary tools and resources to achieve their American dream. Senator Scott and President Trump are undoubtedly working to make sure our country works for all hard-working Americans,' the Scott spokesperson said in a statement. Scott and other Republican lawmakers have told minority businesses they are supportive of the minority business program's mission but wish the agency would change its name to avoid political attention, said one of the Commerce Department employees. The gutting of the agency counters Scott's recent efforts to improve access to economic tools for underserved communities and minority business owners. His Empowering Main Street in America Act sought to improve access to capital for small businesses, including minority, women-owned and rural small businesses. The bill failed to advance in Congress last year, but Scott said last month that he will continue pushing the legislation forward. Scott and other senators championed bipartisan legislation which passed as part of a 2021 infrastructure and jobs bill that permanently authorized the Minority Business Development Agency and expanded it to establish rural business centers at historically Black colleges and universities. Scott said at a 2020 U.S. Chamber of Commerce fireside chat that 'by having more MBDAs located around the country especially in the rural areas, you'll bring expertise to those would-be entrepreneurs and you'll better equip them for success.' And during the pandemic, Scott pointed out he secured an additional $10 million in a Covid-19 relief bill to help the MBDA connect minority-owned businesses to the Paycheck Protection Program, which provided financial aid to companies during the crisis. 'Small businesses — barber shops and beauty salons and landscapers — are in abundance in the African-American community. They are some of the hardest working people you know and they need to understand and know that the resources are there,' Scott said in a 2020 interview on ABC's The View. Under the current cuts, the MBDA will be unable to deliver core programs, like the Capital Readiness Program, which offers assistance accessing capital and provides technical assistance services. A national network of business centers are now being shuttered and contractors have been released. Those awarded grants by the MBDA have not been notified about the status of their grants and are left without guidance, according to two Commerce Department employees. Only a deputy secretary, an acting under secretary and a DOGE employee remain, according to one of the Commerce Department employees. The U.S. Department of Commerce, U.S. Department of Labor and the Department of Government Efficiency did not respond to requests for comment. Trump has long supported shuttering the MBDA. During his first term, he proposed closing or significantly reducing the agency in his budget proposals all four years. On March 14 he issued an executive order requiring the MBDA to shrink its work and personnel to the minimal amount possible under the law. What's unfolding at the MBDA is 'unprecedented,' the Commerce Department employee said. 'A lawful federal agency being functionally eliminated through verbal instruction, without public transparency, process or regard for its statutory basis.' Congressional Democrats, led mostly by Financial Services Ranking Member Maxine Waters (D-Calif.), have argued the dismantling of the agency 'represents yet another unlawful and dangerous attempt to undermine a congressionally established institution vital to our nation's economy.' Meanwhile, Scott's allies say he will continue to support minority-owned enterprises but may have to adjust his strategy in the new Trump era. Stephen Gilchrist, chair of the South Carolina African American Chamber of Commerce and a Trump appointed commissioner of the U.S. Commission on Civil Rights said Scott 'will work with the administration to find a path to make sure that this work continues' to allow 'African American and other minority businesses to really be able to gain access to capital and to get the resources that they need.'
Yahoo
08-04-2025
- Business
- Yahoo
California among states suing Trump administration over order to dismantle library agency
California Attorney General Rob Bonta on Friday joined a coalition of 21 attorneys general in filing a lawsuit against the Trump administration over an executive order aimed at dismantling several federally established agencies that provide crucial funding to libraries, museums, and minority-owned businesses. The lawsuit challenges Executive Order No. 14238, signed by President Donald Trump in March, which directs agencies such as the Institute of Museum and Library Services, the Minority Business Development Agency, and the Federal Mediation and Conciliation Service to eliminate all functions not explicitly required by law and to slash staff and services to the statutory minimum. California, 19 states suing Trump administration over massive layoffs at Department of Education 'The Trump Administration is once again violating the U.S. Constitution and the rule of law by attempting to unilaterally shut down agencies the President doesn't like,' Bonta said in a statement. 'Dismantling these agencies would have a devastating impact on the public and states across the nation.' According to the lawsuit, the order also instructs the Office of Management and Budget to withhold funding already allocated by Congress for services beyond the statutory minimum — a move the attorneys general argue is unconstitutional. 'These agencies serve as the backbone of economic and cultural advancement in our communities,' Bonta said. 'The administration's efforts to incapacitate them are not only cruel but blatantly illegal.' Through IMLS's Grants to States Program, the California State Library received $15.7 million in federal funding to support statewide library programs and staffing. However, according to Gov. Gavin Newsom's office, over 21% of that funding has yet to be sent to California. This marks California's 12th lawsuit against the Trump administration. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
